CPB Exam Bookkeeping Practice Test

CPB Exam Bookkeeping Practice Test

CPB Exam (Certified Professional Biller) is comprised of 200 multiple-choice questions , an in order to have CPB certification you will have to pass CPB Test.

Bookkeeping is the recording of financial transactions and is a component of the accounting process in businesses and other organizations. It entails preparing source documents for all business transactions, operations, and other events. Purchases, sales, receipts, and payments made by an individual or an organization/corporation are examples of transactions. There are several standard bookkeeping methods, such as single-entry and double-entry bookkeeping systems. While these are considered “real” bookkeeping, any process that records financial transactions are a bookkeeping process.

The person employed in an organization to perform bookkeeping functions is commonly referred to as the bookkeeper (or book-keeper). They typically write the daybooks (which contain records of sales, purchases, receipts, and payments) and document each financial transaction, whether cash or credit, into the appropriate daybook—that is, the petty cash book, supplier’s ledger, customer ledger, and so on—as well as the general ledger. Following that, an accountant can generate financial reports based on the information recorded by the bookkeeper. The bookkeeper prepares the books for trial balance, from which an accountant can prepare financial reports for the organization, such as the income statement and balance sheet.

History

The origins of bookkeeping are unknown, but recent research indicates that methods of keeping accounts have existed since the beginning of human life in cities. Babylonian records written with styli on small slabs of clay dating back to 2600 BCE have been discovered. In colonial America, the term “waste book” referred to the recording of daily transactions of receipts and expenditures.Records were created in chronological order and were only intended for temporary use. Daily records were then transferred to a daybook or account ledger to balance the accounts and create a permanent journal, after which the waste book was discarded, thus the name.

The Objectives of Bookkeeping:

The primary goal of bookkeeping is to maintain a complete and accurate record of all financial transactions in a systematic, orderly, and logical manner. This ensures that the financial consequences of these transactions are accounted for in the books of accounts.

The second main goal is to determine the overall impact of all recorded transactions on the company’s final statement. Bookkeeping will eventually determine the company’s final accounts, namely the Profit and Loss Account and the Balance Sheet.

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What is Bookkeeping Test?

Many businesses use bookkeeping tests to assess candidates’ abilities. Bookkeepers must be knowledgeable and precise in order to work in this industry.

How much money does a bookkeeper make?

According to the Bureau of Labor Statistics, the median annual salary for bookkeepers is $41,000. That works out to just under $20 per hour. These figures apply to bookkeepers who are salaried full-time employees.

Freelance bookkeepers who work from home typically earn more than that – closer to $30-$40/hour or more after gaining some experience.

There are additional advantages to working for yourself. To grow your business, you can work from home, set your own hours, set competitive rates, and stack clients.

What qualifications do you need to become a bookkeeper?

Bookkeepers do not need a degree to get started, and some begin with no experience and learn on the job (more on this a little further down). Aside from training and experience, there are a few things that every bookkeeper should be proficient in:

  • Math: Because your job requires you to work with numbers, you must be proficient in the subject. This job does not require advanced math skills, but you should be able to track credits and debits without the use of financial software if necessary.
  • Basic computer skills: You should be familiar with Excel or Google Sheets.
  • Attention to detail: Minor inconsistencies can have a significant impact on a company’s finances. You should be able to keep accurate records down to the cent and detect even minor mistakes.
  • Problem solving: If there are errors, you must be able to correct them. Because mistakes aren’t always obvious, you should be able to devise and carry out a strategy for identifying and correcting them.
  • Organization: You may be managing the books for several clients at the same time, or you may be recording a large number of transactions for a single client. Simply figuring out how to work from home necessitates good organizational skills.

Bookkeepers must also be honest and up front with their clients. Keeping track of a company’s finances is a serious matter. If you suspect fraud or misappropriation of funds, you must make the right decisions.